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tv   Markets Now  FOX Business  October 4, 2013 1:00pm-3:01pm EDT

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adam: shutdown standoff. john boehner lashes out. lori: the markets continue to gain. we are still on track for the second straight weekly losing streak. adam: the numbers you need to know as social media giant unveils its ipo plans. we are talking about twitter. lori: did you know you are watching sesame street? [laughter] saks fifth avenue is launching a
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new website. this hour, the president joined those exclusively. adam: music legend bob marley's son. a good drinking cup of coffee. lori: moving toward session highs. let's head down to nicole petallides. nicole: looking forward to that interview. the dow jones industrials are up right now by about 72 points. people are taking a little bit of a breather. the first day, october 1, was actually the first day of a new month. new money comes into the market.
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the rest of us drifting to the downside. any headlines from washington could be market moving. let's look at walmart. walmart saying exactly that. they are seeing softer sales because of the federal employees that are not shopping much right now. back to you. lori: thank you. little progress in the debate in washington over the government shutdown. rich: president obama and vice president biden taking a lunch break. president obama is happy to have
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negotiations with boehner, but he cannot do so with a gun to his head. house speaker john boehner meeting with the republican caucus. he left afterwards and was pretty fired up. this is not some damn game. the american people do not want their government shut down and neither do i. rich: jay carney tweeted this morning, we utterly disavow the idea that the white house does not care. when it is, the house should just act now. no strings attached. there will be more weekend work. these proposals continue to pass the house.
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they go to the senate where senate democrats say they are reject the them. the standoff continues. back to you. lori: the countdown ticks down now to the debt ceiling. adam: at&t chairman and ceo sharing his opinion on the debt ceiling debate. it is unthinkable that the united states could default on its financial commitments and it would be the height of irresponsibility for any public official to consider such a course. even the discussion of the fall poses great risk to our economy. we have less than two weeks before the united states hits it that limit by then, the u.s.
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will do the unthinkable and potentially the fall. it would be devastated. what are the odds of it actually happening? let's had two senior economic strategist at deutsche bank. i keep sharing it will never happen, it will never happen. it is filled with people who said it would never happen. >> i do not think that d.c. policymakers are ready to cross over that brink. that would really bring us into unchartered territory. what i hear is that a default on the debt would be a kid to where
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we were when lehman brothers were failing and the low point of the financial crisis. policymakers do not want to go down that route. we have heard from both parties that they are not willing to go down the route of a default. that could bring us to a scenario where oddly enough they raised the debt ceiling, but still have problems with the budget. they are putting the pressure on capitol hill not to go down that hill. adam: are they putting enough pressure on capitol hill? it seems as if investors are saying we will get a deal. i am not going to worry. >> we have not seen that dip.
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we have seen the markets drift lower over the course of this week. we have seen investors coming at lowe's on a rumor that things may turn around. this market is poised for an announcement for some kite of resolution. it does not mean we this default columns right away that day. adam: is it possible? in reality, with tax revenue still coming into the treasury, could we make our interest payments and still have money left over?
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>> certainly some things can be deferred. it is politically difficult to do that, no doubt. the big one is november 15. that is about $30 billion. we are unlikely to have those resources. we can extend this into november. no one wants to see that. the market would put increasing pressure. adam: very quickly, the president is about to speak, do you think we go past october 15? >> potentially, jeff is right. things could be extended into november. the market will push congress to act before that. when it appears that congress will not get together, that is when you will see it.
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it could erode very quickly over the next week or week and a half. adam: tenure time this market? >> i think that is a bad idea i think selling stocks in the short term has been a bad move by investors issue is that we have to cut you off. we are going to the president. >> the house of representatives have the opportunity to do the same exact thing. this shutdown could be over today. we know that there are the votes for it in the house of representatives. as i said yesterday, if speaker boehner would simply allow the vote to take place, we could end
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the shutdown. a whole bunch of families all across the country will have the certainty that a paycheck will be coming, that they will be able to make their mortgage, that they will be able to make their expenses, that they will be able to look after their families and we can get back to what we should be focused on every single day. when it comes to negotiations, i have said i am happy to have negotiations with the republicans and speaker boehner on a whole range of issues. we cannot do it with a gun held to the head by the american people. reopen the government, make sure we are paying our bills. take your cues from folks like this. you know, who are more interested in making sure that
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everybody is being treated fairly and properly. with that, i am going to order. [inaudible] >> there is no winning. we are working for the agricultural department, we are working for veteran affairs who are on their jobs despite the fact that they are not getting paid. as long as they are off the job, nobody is winning. we should get this over with as soon as possible. i am going to order.
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adam: you are watching the president who is now responding to the speaker of the house. the rhetoric is the same as you always get out of washington why are politicians taking their code off and making it look like they are doing some kind of work? he says he is willing to negotiate after. john boehner says he is willing to sit down and discuss it. lori: it says so much about the brilliance of the way our government was laid out. you cannot aid nor a significant minority. the republicans, whether you
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agree or disagree, because of the way our democracy is organize, they are being heard and you cannot ignore them. adam: it is also painful as well. lori: absolutely. in the meantime, this story broke after the bell yesterday. twitter finally releasing its financial information. it looks like we are looking at a november ipl. >> that is right. we do not yet know which exchange. the ceo of nasdaq has visited twitter today. let's take a look at the money situation. the more money twitter spans, the more it makes, the more it spends.
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there is a 40% increase of losses. twitter is poised to do well. 75% use mobile devices to tweet. twitter generates 65% of its total revenue through mobile advertising. who stands to make the most money here? interestingly, twitter is not following in the footsteps of technology companies before them. twitter says it has about 218 million active users. that means that the growth is slowing down. the growth rate is down compared to before.
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twitter acknowledges the slow growth. they say they anticipate that it will slow over time as the size of the user base increases. we expect to see that listing in november. that could change if the shutdown keeps on going, lori. lori: jo ling kent, thank you for the update. check out shares of tweeter home entertainment group. shares now halted after soaring today. look at that spike. what a difference a queue can make. this is scary. a storm brewing over the golf. karen. already evacuation under the way. adam: potbelly soaring in its debut on the nasdaq. we will take you behind the
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the markets. nicole petallides covering the action for us from the floor. nicole: we look at homebuilders. we look at home sales. markets are all up. homebuilders are all down. toll brothers down 3%. they have added some cautious comments. they do a survey each month. they have seen a pushback from the buyers who are now seeing higher prices. also, a lack of inventory. that was another factor that went into the survey. back to you. lori: thank you. see you in 15. adam: potbelly up more than 120% after making its debut on the nasdaq.
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jeff: in chicago. if you come to a potbelly, it is not like any other typical chain. where else do you get live music? i tell you, they do not have standard dual decor. that is not the same in every store. we talked with alan lewis, cheryl did earlier, about this ipl. take a look at the numbers on the stock. she asked him if he thought the ipo was underpriced. >> i think they did a fantastic job. you know, once you go out, you cannot predict what will happen. we are happy. this begins the rest of our lives as a company.
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jeff: i will tell you why people are so excited about this ipl. it has to do with growth. if you look at the competitors, they are all done pretty well. 1500 for panera. these guys only have 300. a lot of room for growth. adam: all right, jeff flock. reporting live to us from chicago. lori: saks fifth with a new wave the stores are operating luxury for less. adam: open for business four days ago. are things going more smoothly for those health exchanges? ♪ when we made our commitment to the gulf, bp had two big goals:
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lori: it is day four of the obamacare exchanges. the white house is asking folks to be patient. how many people have managed to sign up so far? gerri willis is hosting a special series. are people able to sign on?
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gerri: you would think that would be the case, but not so much. the government said more than 4 million people went on. it just is not the case. in california, they say that they had 5 million people that went on their exchange website. it turns out it was less than 7000. when you get down to the conversation about how many people were actually getting insurance on these exchanges, not many. in north carolina, blue cross blue shield said they were able to find out one person. adam: that is it? gerri: kentucky managed to do the best job.
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they are being so quiet about this. last night we called and try to get numbers. they would not answer the questions. they are not talking. it is radio silence at health and human services. we will be watching this for days now. so many people have questions about this. we will answer them with a bunch of, there is the phone number right there, we will answer it with a whole panel of experts. call us in the 6:00 o'clock hour. adam: that is a great idea. a lot of people are just plain confused. lori: when do the fines kick in? the clock is ticking. thank you, gerri. see you tonight.
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"the willis report" right here on fox business. there is a number. flashing it for you once again. call gerri and asked her what her favorite bottle of wine is, too. [laughter] adam: okay. let's celebrate. we are getting the latest numbers on how u.s. citizens actually feel about all of this. 54%, the majority of voters would like to see all or part of the healthcare law were repealed. that is down from a high of 61% in january 2011. americans are also concerned about the government shutdown. it is a very serious concern. 7% say it does not concern them at all. lori: bad news for users, may be good news for investors.
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adam: oil rig workers evacuated along the gulf coast as a tropical storm named karen gains in the golf. the local
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really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally. adam: we're going to head back to the floor of the new york stock exchange. that's where we find nicole petallides and she is watching what's happening on the dow for us. >> i'm watching the dow jones up 63 points right now. still down for the week though, on a busy week of course. and of course on the heels of the government shutdown. facebook has an up arrow today much. still above the $50 mark. big news about instagram that will have advertisements on instagram. you know what this means.
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big money for facebook going forward. analysts talking about. stearn agee noting while the rollout may be slow, it will be good news. it will bring in $400 million in revenue likely the next three years, even more long term. they raised their price target up to 58 bucks that would be higher than the all-time high of 51.60. back to you. adam: thank you very much, nicole. lori. lori: instagram is catching on? do you do it? adam: i don't. lori: i don't either. the latest update from the national hurricane center say tropical storm karen is weakening but still bearing down on the gulf coast. let's head to the fox weather center with the latest from rick reichmuth. >> that weaker part is the best part of the story. the storm is weakening and there aren't any indications it will strengthen in the shore r short term. it has the round thing with the you think of a tropical storm. but what subpoena hag the center
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of the storm is out here and all activity is displaced from the center the storm. that is not a good sign for a storm to strengthen much at least in the short term and we'll rin out of time. this is the projected path. i will show you a little more in detail. a interest of your viewers with the oil platforms where the highest concentration is. the official forecast may be getting this up to a 60-mile per hour storm sometime tomorrow afternoon. it will take a right-hand turn. we don't know where it does, if it does it sooner less impact with the oil rigs and potentially a little bit more time over land, could strengthen a little more. if it take as westward trajectory here on the left side of that path it may be a bit of a weaker storm. you notice it is moving quickly. it will not have a lot of time to bring a lot of rain argues prolonged rain event. that means rainfall totals will be kept down. three to six potentially up to 10 inches. that will give some localized
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flooding. storm surge maybe one to four feet in isolated areas as well. that activity, guys, with a very active season and we haven't seen that we have a storm here knocking on our door and fortunately it doesn't look like it will that be strong and cause catastrophic damage anywhere and that will be welcome news. lori: no one will complain about that rick, thank you. >> you bet. adam: tropical storm karen is already impacting the oil drillers. arco, bhp, billiton, williams started shutting down the oil and gas platforms in the gulf and their workers. fox business's phil flynn of price futures pits is in the cme. nobody likes to see it get shut down. we just heard rick say don't expect any kind of catastrophe but you have to take precaution, right, phil? >> absolutely. the market is taking in stride. i hope they're not too complacent with the storm because usually when they are that is when they surprise to the upside. right now we're talking about 80% of u.s. oil and natural gas
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production being shut down now in the gulf of mexico. that is not to mention impact on oil imports into the gulf coast over this weekend but having said that another reason why the market is not as nervous as it normally would have been, we don't depend on the gulf of mexico as much for our oil production as we did just a few years ago today. having said that, now look at impact on the market. we're seeing oil, the vix start to bo up a little bit. traders are getting a little more nervous. yesterday oil was down. today they're creeping up. natural gas prices absolutely flat right now. you can credit of course the fracking and production. even markets that you don't think would normally be affected by this type of storm, you think oil, look at cottons and grains. a lot of participators are looking at the storm, if it has tendency to get over farmland and they might not get into the fields. that could have an impact. now that the storm is going more towards the east coast, the
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cotton farmers are breathing a sigh of relief there is lot of concern that a lot of rain could damage that crop right now. the bottom line i would say on the storm, be very careful that they're underestimating it but right now traders are hopeful. back to you, adam. >> phil flynn from price futures group, thank you very much. talk about data hogs, today's fallout not from the government shutdown, meat producers were left scrambling. what tyson food is doing about that. lori: bringing the most famous shopping strip to your place. the president joins us with a look at his newly launched website. ♪ [ male announcer ] did you know
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so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. never really thought i would make money doing what i love. [ robert we created legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law on your side. >> i'm cheryl casone with your fox business brief. another impact of the partial government shutdown, no usda prices. tyson told producers it has a new formula to determine hog prices since usda prices have been suspended. hershey will build a chocolate plant in malaysia. it will be one of the largest
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facilities they have. they will manufacture chocolate, reeses ice breakers. china is hershey's fastest growing region no sotheby's post ad poison pill stoping a on investor. investor dan lobe up his stake to 9.3% and called the ceo to step down. that is latest from fox business, giving you the power to prosper.
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lori: well bringing high-end retail clothing to the masses saks fifth avenue, off fifth, launching a new website for bargain shoppers making it one of a few to do that. it is joining us today. saks fifth avenue president rob wallstrom. i'm getting ahead of myself, rob. so the e-commerce industry contributes 5.% total retail
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sales in the u.s. for the second quarter of this year. forrester research, which is a market research firm, is estimating that the share will go up to 10% by 2017. so you're hopping on this trend big-time. >> absolutely. we're seeing it. very excited. the e-commerce growth across the industry is changing the face of retail. >> saks fifth avenue has reputation of high-end luxury of the this is a little bit of consumer with offit. our stores are very popular. will you be able to match the success of the zacks.com website and saks fifth avenue in midtown manhattan with off fifth or is it totally a different business plan. >> it is definitely a different business plan. only 10% of customers crossover between the two businesses. we're definitely reaching a new customer. the customer that wants luxury but wants a great deal. lori: when talking about a great deal, markdown of 40%, 50%?
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>> 50, 60, 70, with really great deals. lori: you combined the two websites or three websites if i'm not mistaken. the last data figure i have is 900 million in online sales for 2012. can you give me your projections for off fifth.com and what you hope to contribute to in terms of percentages overall revenue? >> we don't really break it out between the different segments. lori: right. >> but we definitely feel the off fifth opportunity is see norm must. we think it will be a major growth engine for the company. lori: what is going on with the holiday shopping season? they seem to be making black friday a thing of the past by moving it earlier and earlier on the calendar. there was a big "wall street journal" article talking about how hanukkah is crossing over thanksgiving soft that is super early. you hear all the retailers out with ads already, not a month before halloween. what is going on? what is the strategy to attract the holiday dollars? >> with holiday shopping as retailer you want customers out
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early. you want them out early with the best deals, the best selection so you're right it starts earlier and earlier every year. lori: so you have a little bit after competition. tj maxx launching a website and nordstrom out there and off fifth.com. what is this -- >> off fifth we believe it is about great luxury brands and about the product and our experience. our website is modern and open and high style and i think customers, customer feedback has been very surprised what they can find online, great deals and the great brands. lori: we're talking about non-stop about the government shut county. do you expect to trickle-down with something like consumer confidence affected by all this chaos in washington? >> i think we are definitely watching it very closely, but you know we'll monitor it day by day. lori: what are you expecting in the holiday in terms of retail sales, stronger or weaker just overall? >> i think it will be stronger than last year but i think we're expecting very moderate sales increase over last year. lori: what are some of the risks
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you're looking at? what some of the challenges getting this website up and runing? >> i think from the time we decided to launch to get online was six months. we devil rayed to get it up. it is always about finding the best product. lori: robert wallstrom, president of offfifth.com. >> i appreciate it. adam: we're getting headlines from minneapolis fed bank president coach la coat at that. this is a coat, whatever it takes to reduce unemployment as quickly as possible. that could include increases stimulus. the market should react to that postively. we want to reget back to the markets. stocks near record highs. jason weisberg, manager with seaport securities on the floor of the new york stock exchange. i want to requote what kocher la coat at that said.
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do what is necessary to increase stimulus. we should be up greater if people take him seriously, kocherlakota. >> if it was from the fed chair we would see he quicker reaction. the fed is kind of takeing a back seat to what is going on in washington right now. i think that is what you're seeing reflected in today's volumes and volumes last couple days since the shutdown started. adam: jason, as we get closer to october 17th, the deadline jack lew says, government debt deadline, bets are off. we're out of money. the analysts saying those coming into play that those waiting to jump in will jump in? >> i do anticipate increased volatility. i don't know that we'll see a blast to the downside. we are in a very, this is a great bull market. we've had sector rotation. we've only had one 5%
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correction. all signs are very bullish. i realize that we're takeing a pause here because we have this unprecedented government shutdown. faced with the debt ceiling. the qe, but, the sector rotation we've seen in the overall market direction is very bullish. and i think that, you know, calmer heads will prevail in washington and we'll see upward direction we've seen throughout the year. you also have to remember, half the people closed up for the year because they fear this volatility you previously mentioned. the other part of the equation are the people that didn't believe in this move to the upside that are going to be forced to chase yield between now and the end of the year and we could see a very violent push to the upside if we get this government resolution that we all anticipate. adam: all right. jason weisberg. a lot of people are counting on you being accurate because it sound good. jason, all the best to you. >> you too. lori: back to retail. jcpenney shares not liking news
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ceo mike ullman has tapped jan hodges to be the head of the home division. the internal move was made earlier according to "the new york post." hodges was most recently senior vp of sales and promotion in penney's marketing department. she is 25-year veteran of the company. she is the general merchandise manager of the home business. jcpenney has been struggling as you know to cleaa up its messy licensing deal with martha stewart that got the company slapped with a lawsuit from macy's. if there is two things jamaica is probably most famous for, one is coffee and the other is bob marley. adam: i know we're you're going with that. our next guest found a way to honor his father, rowan marley. on his one love, the coffee business. ♪ [ indistinct shouting ] ♪
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[ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ from td ameritrade. help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger.
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lori: he is fulfilling his father's dream of returning to the farm. founder and chairman of marley coffee. bob marley's son, rohan marley, has gone back to the basics. he is here to tell us about marley's coffee farm in jamaica in what is being called coffee with a conscience. nice to meet you. an honor to have you on set. making coffee out of blue mountains is world renowned. you are looking to capitalize on that. >> well, you know, being from jamaica we're known for many things. reggae music, coffee and being that i'm not a singer i had to find something, something from home that i can really represent my country and it was blue mountain coffee. you know, jamaica is has been known for blue mountain coffee
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since the 1700s. now, number one sought-after product as far as coffee, blue mountain coffee. adam: you talk about blue mountain coffee and on the radio i heard a woman saying about blue mountain coffee it's a good drinking cup of coffee. i love the phrase. 85% of the americans drink coffee. i imagine you're tapping into that market but your coffee, what you're growing is, it is organic as well as there are some other things that would be -- >> well, what we pride ourselves on is the ability to give back to the community and with marley coffee and our own farming development we created jobs in the community. we have sourced, not only do we have blue mountain coffee but we source coffee for ethiopia, new guinea and guatemala. we have certified products and certified coffee. one of the things we're doing of late, partnering with rfa, rainforest alliance that respect
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the earth. about the ecology system. doing things with not only a stake but give back. it is important to give. lori: in the same study adam was referring to, it reported that americans also love the plain ol' canned coffee. adam: folgers. lori: mountain dew, not mountain dew, but maxwell house, forgive me. is the goal to reach at that -- breach the market share in the u.s. or make the social statement you're describing to help the people of scray may can? >> absolutely the goal to get in that place. coffee is like wine. most people drink coffee but i taste my coffee. so every farm, every farm has a story, you know i mean, how it is prepared, what goes into the work. so as you can tell, you go into the local grocery stores the organic movement is becoming more vast. not only in the organic stores. so we're positive that movement to enlighten people about coffee. adam: you're in new york. people have fights over whether they buy at fairway coffee, dunkin' donuts, starbucks
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coffee. where do they get marley coffee? >> right now marley coffee you have to go to pc richards and sons here. obviously online. we're at safeway. you know, the whole foods. lori: so, rohan, you have 11 siblings. >> yes. lori: how did you assume the crown of the business manager of the family? you. >> know what? i was assumed, it was given because, you know like i was telling you before, music -- lori: you're not a singer? you run the businesses? >> not run the businesses be a part of it. music consumes 24 hours of my brothers and sister's life. they're so busy. some people work 9:00 to 5:00. they work 24 hours. if i can't excel in something what makes me so special. adam: you're so special. we've got to go. thank you. >> thank you. >> stocks are up today but down for the second straight week
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thanks to the shutdown showdown but mike crofton says the longer the d.c. drama lasts the better it is for investors. tracy byrnes and ashley webster take you through the next hour on fox business. don't miss it. lori: that was wonderful. ask me what it's like to get your best night's sleep every night. [announcer] why not talk to someone who's sleeping on the most highly recommended d in america? ask me about my tempur-pedic. ask me how fast i fall asleep. ask me about staying asleep. [announcer] tempur-pedic owners are more satisfied than owns of any traditional mattress brand.
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tracy: happy friday, i'm tracy byrnes. ashley: i'm ashley webster. battle in the beltway. house speaker john boehner and president obama trading jabs over the shutdown showdown. we'll have the latest from capitol hill straight ahead. tracy: stocks climbing near the highs of the day but the dow and s&p are on track for a losing week. despite concerns over the shutdown mike crofton says the longer it lasts the more opportunity there is for investors. he is going to explain all that straight ahead. ashley: hashtag, finally. a look at twitter's financials. it is one of the most anticipated stock offerings of the year and we will have an expert panel for to you break down all of the numbers. that's coming up. tracy: pretty exciting. it is top of the hour.
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time for stocks. we go to nicole petallides on the floor of the exchanges like we do every 15 minutes. stocks are at the highs but still a good friday, nicole. >> the dow is about 25 points off the highs of the day at 58 to the upside. so you can see it up almost half of 1%. the nasdaq has been the benbest of the bunch. that is another story i give you the for the whole week. s&p 500 up half of a percent. the dow is holding 15,000 mark. the s&p 500 below 1700 for some time now. we want to do comparisons here for you for the week. of course with the government shutdown, that weighs on investors overall. we've seen the vix, the fear index, sitting at one month highs this week though today pulling back with a down air yo. the dow and s&p for the week, looks like maybe the s&p can squeeze out a gain. the dow has been to the downside. it closed above 15,200 last week of the so that is not looking
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likely. the nasdaq, the tech-heavy nasdaq has been doing the best of the three and doing well there. that looks better for the whole week picture. back to you. tracy: thanks, girl. see you in 15 minutes. ashley: as we know washington is still at a stalemate as the debt ceiling deadline looms ever closer. rich edson his head spinning on capitol hill with the latest. rich? >> listen the amount of movement we've had on this day can be summed up with the president and vice president leaving the white house ground and going out for lunch. that is about the majority of the action we've had on capitol hill today although the president or in washington today. the president made remarks on what is going on in d.c. and was asked if he has any plans on meeting with the speaker? >> nothing firmly planned but i'm always happy to talk to him and tell him, we can negotiate about a whole bunch of things. >> this isn't some damn game! the american people don't want their government shut down and
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neither do i. all we're asking for is to sit down and have a discussion and to bring fairness, reopen the government and bring fairness to the american people under obamacare. >> so from here house republicans continue to vote on bills that fund pieces of the federal government, send them over to the senate and the senate continues to reject them. however there is one proposal the white house is just signaled that it would be willing to sign. and that would offer government workers back pay if they were deemed non-essential and have been furloughed through this. the house is planning on passing that. now that the white house has signaled, perhaps the senate will pass this. politically that opens the door. republicans are saying with well the white house is signing off on give being back pay to workers what about cancer research and opening up national parks and museums? the game continues. ashley: certainly does. rich edson you're right in the middle of it and i'm sure you areyou're thrilled. thank you very much.
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tracy: mike crofton, president and ceo of the philadelphia trust company and i have to say, first time i realized you are also a lehigh grad as am i, really very cool. >> i am. tracy: now even happier to speak to you. >> thank you. tracy: shutdown, short term shutdown, good news for investors. why? >> because it takes tapering off the table. the fundamentals of the companies that make up the indexes haven't changed. balance sheets are in the best condition i've been in my lifetime and longer. companies have reduced their dependence on employees unfortunately for the unemployment rate. increased the technological innovation within their industries and are sitting on tremendous amounts of cash. nothing has changed but the fundamentals of the company. takes tapering off the table. the fed will keep interest rates low. nothing will derail this market. if we get weakness on continued stalemate here in washington it will be another really great opportunity to buy for the individual investor. tracy: so then, pushing tapering
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off, are you at this point thinking january? >> yeah. i don't think you see it this year because even if, the government were to reopen tomorrow it will have some negative drag on gdp and that will be enough for the fed to say, we're not tapering right away. we'll keep things as they are and see how things look like perhaps at the end of the first quarter. tracy: this is goods news for anybody in the stock market. to your point the market will recover and keep going up. you're fully invested though so what if we get the little buying opportunities? you have nothing to dip with. >> well i have some defensive positions which i would rotate out of into more aggressive positions if we get the kind of dip i'm expecting. i have probably about 6% cash which isn't fully invested but close enough. tracy: so you are expecting this market to fall a little further. that being said, what would you tell people to go in and buy. >> i am. in industries i think technology, domestic energy certainly, financials, absolutely. all those industries are poised
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to do a lot better. look the economy isn't growing fast but it is growing and i think if we get path on the path we were on before this little hiccup you might see the economy expand at 3, 3 1/2% at some point next year. you couple that with low interest its, you couple that with no tapering and what you have is the ability for most of these industries to see p-e expansion which should drive most stocks prices higher. tracy: we're loving that you're glass half-full on this thing. what worries about all this? there has got to be something. >> big problem in the middle east. it is totally not expected by the market but it is always a possibility. you get a big disruption in the middle east, if iran comes back into, you know, negative spotlight which is possible, if there's another big issue in syria, if egypt continues on its road to anarchy, all those things could overwhelm the market. the market has not priced any of it in and that could be a problem for the market. i defend against that by owning defense stocks and domestic energy stocks.
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tracy: it's a fabulous point you make because we become very myopic and focus on the event of the day and forget there is still a middle east out there. there is still actually a europe out there as well that could cause problems any day as well, right? >> well, i think europe is on the mend. i think they will bounce along the bottom for a while. you could actually make money buying into companies with a big european exposure. mcdonald's is big european exposure and company like sigh lemm which has big european exposure which hasn't helped it yet. get into multinational companies, domestic companies with european exposure in the long term i think you will served by that i don't think you have any problem with europe moving forward. they're at the problem. the problem is they may stay at the bottom but the trend is up for them. tracy: i have to ask you about your financial picks. you like pnc, citi. >> love pnc. tracy: why? >> i like usb, pnc and citigroup.
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i like them they are priced as regional banks. they are priced as regional banks. they're small money center banks. the money center banks i think are really going to be dominant in the next part of this economic cycle. so if you can buy banks that priced cheaply as regionals and they're actually money center banks you will be well-rewarded for doing that. tracy: i transposed those letters. usb. mike crofton, my fellow lehigh grad, thanks for being on with us. have a good weekend. >> thanks for having me. ashley: wall street finally got a peek at twitter's financials ahead of its highly anticipated ipo the company hopes to raise one billion dollars. according to the now public s-1 filing. while the company is still losing money by the way, twitter's revenue in the first half of the year more than doubled from the same time last year hitting $253 million. the company's net loss though, also rising from a year ago and it is blaming heavy spending on research, marketing an sales. it will trade under the symbol
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twtr but the one thing we haven't found out just yet, where exactly the company willies its shares. so there you go. that is a big one of course. all the lobby something going on from the new york stock exchange, the nasdaq. so it will be interesting to see where they end up. tracy: yeah, you know, to have a young company spending money on r&d that is not a bad thing. ashley: not at all. just monotizing the popularity of twitter. >> absolutely. we'll have much more on that, twitter's ipo filing coming up. we'll break down the numbers with our all-star panel. expert attorney brian corn and s&p capital iq analyst scott kessler. ashley: guess what? it is the first friday of the month, well coon mists and investors are at a loss without the september jobs report. nowhere to be seen. wells fargo chief economist john silvia will weigh in straight ahead. tracy: first here is how oil is trading. it is up to $103.54 a barrel.
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i will tell you i am starting to see it at the pump. a nice little decrease. we'll be right back. thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.
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tracy: despite the government shutdown the supreme court will be open for business monday and work place disputes make up the majority of its cases. liz macdonald's bottom line is focusing on cases that will actually affect the business word. what is going on? >> i am low in the chair. am i at the children's table at thanksgivinging? look at me. >> you are. tracy: better than having to eat in the kitchen standing up. >> where you are usually. tracy: totally, that's where i go. >> we're losing it. we're losing an anchor of. let's get right to it. tracy: talk about having thanksgiving dinner again. >> not sicilian stuffing. that is gross. ashley: get to the supreme court. here is what we're talking about. if this government shutdown was not grabbing the headlines the supreme court is open for business on monday and that cases they're hearing strike
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right at the heart of unionization in the workforce. look at what they're looking at. limiting the power of public sector unions to collect dues. limiting ability of private sector unions to sign up members. and, reviewing president obama's recess appointments to the national labor relations board. the one about collecting dues, you guys know this case. this is about the health care worker, she is a private health care homeworker. because she was being paid by medicaid the state of illinois said you know what, you have got to pay dues, even though hem health care worker private, has to pay dues. the big one is the nlr. about that happens, if those recess appointees get knocked out by the supreme court that will overturn hundreds of decisions that have been in place by the nlrb since january 2012. one big one we talked about was, the famous case where the, non-profit union workers, basically were harassing another worker on facebook. tracy: yes. >> they got fired.
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and then the nlrb, reinstated them after they were fired for harassing their coworker on a facebook page. so you know what? that non-profit too was about domestic violence but the workers were harassing ironically a fellow worker. this is all about being able to bash your coworkers bash your boss on your facebook page and not getting fired. tracy: you make a great point and so did mike crofton in the last block, there are other things going on in the world, believe it or not we have to focus on and not forget about. >> the nlrb decision about reinstating workers who harass others on facebook, the nlrb, said, listen you're allowed to watercooler talk. ashley: that is not watercooler, that is internet world. >> #xerox machine. that is different. ashley: definitely. >> so a big deal, a lot of cases coming up this monday. we'll be watching. >> lizzie mack, my grandmother is shooting lightning bolts down at you because you slammed her
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thanksgiving stuffing recipe. duck on your way out the door, darling. ashley: she is at the big people's desk. so that is a good first step. coming up to quarter past the hour, nicole petallides on the floor of the new york stock exchange, wondering what the heck we are talking about. nicole, you are watching some tech stocks. >> i don't know, i'm happy to laugh with you, whatever it's about. let's talk about tech stocks we're very familiar with. the first is facebook. facebook will have a new revenue stream. that is on instagram. with ads on instagram and stearn agee noting that could be $400 million in revenue in the first few years. long term, much more than that. that is great news. it is interesting how facebook came out with the instagram ad revenue news before twitter came out. they are battling it out. they raised their price target up to 58 bucks. adobe, i don't want to leave this out, cyberattack. mid-august this began. this could affect three million
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adobe customers. personal information were compromised. they're doing all they can. they say change their password. and notifying people who may have had credit card numbers revealed. they will follow up. they have federal investigators on it as well. tracy, ashley. ashley: nicole, thanks so much. we'll be back to you at the bottom of the hour. the dow is up 71 points. tracy: case to keep laughing. busy day in the ipo world. we're not just talking about twitter. there are shares of a sandwich shop, potbelly, they're soaring today on the first day of trading. jeff flock has a closer look next. >> they're not soaring but expanding appropriately. look how the u.s. dollar is moving today. looking better today, the u.s. dollar? we'll stay on potbelly. there you go. another mixed picture. the dollar, stronger against the euro and pound which are down. canadian dollar and peso moving higher. japanese yen down a little bit against the dollar. we'll be right back. when does your work end?
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>> at 28 minutes past the hour, i'm arthel neville with your fox news minute. tropical storm karen is bearing down on the gulf coast. the national hurricane center expects it to be the near the central part of the coast tomorrow as a weak hurricane or
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tropical storm. a state of emergency has already been declared in louisiana and mississippi. a federal law enforcement official says the woman who was killed following a car chase in washington, d.c. was delusional and believed president obama was communicating with her. 34-year-old miriam carey tried to plow her car into a barricade at the white house yesterday, begining a high-speed chase that resulted her being shot dead near the capital. in sports, a-rod, alex rodriguez sued major league baseball and the commissioner saying they're trying to destroy his reputation and career. the new york yankees third baseman is seeking unspecified damages. he is appealing his 211 game suspension for violating the baseball's drug and labor contract. those are the headlines on the foss picks network. back to ashley and tracy. ashley: fox's arthel neville, thank you so much as as you.
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nasdaq chain, pot lilly shares are -- pot bellly is expanding at 120%. jeff flock is the where it all began. >> i was an early adopter in the 1981 at first one. we have early adopters to the stock. we love to have the ipo do as potbelly did today, double in value after it hit the nasdaq. one of the reasons why that is the unique nature of this more about that in a moment. first the competitors. there's a lot of competitors out there like panera, buffalo wild wings, chipolte. they also are much bigger than potbelly. a lot of potential for growth here in this unique place where you hear things like live music and special decor to each location. we talked to the ceo of the company about that on the fox business network earlier today. >> we have a great experience
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and it is a combination of our awesome product, people in place. you come into our sandwich shops you will not find formica. you will find wood. you will find live music. a lot of attention on great quality. >> it is not your typical chain. i like to think of it as the unchained chain. they have a guy that makes decor different in each shop. whole idea of live music. you don't get live music at mcdonald's or panera or other ones. kind of an interesting concept. we'll see if it catches on. >> very good, jeff flock, the unchained chain restaurant. thank you. >> and potbelly by the way means stove. doesn't mean waistline. so you know. potbelly. ashley: then i have an expanding stove. that's what i can tell people. thanks, jeff. tracy: you won't get an expanding stove. you eat too many of them, that's for sure.
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all right, we've been talking about it all day. twitter revealing its plans to raise one billion dollars in its initial public offering. finally giving people a lock at company financials. so will investors like what they're seeing? brian corn, a attorney at pepper hamilton and s&p i.q. analyst scott kessler. there was no jobs report. they read the 200 some odd pages of this s-1. a lot of information in there. i junked because i'm an accounting dork straight to the risks section. there are risks, right? scott, i will toss it to you first because i know you read this whole thing. there are some risks to this company. >> without question, tracy. to be frank we saw risks jump out at us before we even got to the risk sections when they profiled high level financials. it is great they have shown substantial growth in revenues but this company has lost 300,
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$350 million since the beginning of 2010 and that is just through june. to me, and to us, that is probably ground zero when it comes to risk for this company. when and will it become profitable? tracy: on the legal side, brian, let's talk about this confidential submission. so they submitted, the sec really hasn't commented on this. this thing could go back and forth for a while. >> that is absolutely correct. the sec takes 30 days without exception to respond to comment letters. this filing came out 21 days after their confidential is submission. almost the sec has not sent them the first set of comments and they could have substantial revisions. >> let's talk about how they will monetize this because they can, scott, right? they are overseas. monetizing internationally could be a big home run for them. >> yeah. when you look the s-1, one of the things that stood out to us was the fact that they talked
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about how, i think, 77% of their users are overseas, yet they generate only 25% of their revenues from international sources. essentially what this means is, they have a lot of people using the platform from around the world but really the only major contributor to related revenues are here in the u.s. so really once they start, not only just building out but monetizing internationally, we think that's going to really help them sustain, maybe accelerate growth relative to what we've seen. tracy: yeah. the, they're focusing international. australia, brazil, canada, japan and the u.k. there has to be opportunity there. let's talk about the underwriters on the deal, brian. goldman sachs got the nod because i guess morgan messed up facebook? >> morgan stanley is also on the top line so i don't think this was a complete snub for morgan stanley but there is perhaps a shift towards goldman
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with the transaction, especially a transaction of this size and magnitude. tracy: what do you think about the exchanges? do you have an over/under where you think it will end up? >> i think more likely to be a nasdaq listing simply because the ticker symbol is four digits. if you look at new york stock exchange they can obviously list a four-digit name. comcast and some others come to mind but nasdaq doesn't list any names less than four digits. at worst they left themselves the option to go either way but might be hinting closer to nasdaq. tracy: scott, how do you feel about all that? >> that is obviously not my area of expertise. i would say the following, linkedin. that is four-character ticker symbol social media company listed on new york stock exchange. i think given what happened over the last year or two the new york stock exchange has maybe a better chance than they otherwise would have had in getting an ipo like twitter. tracy: scott, i'm going to ask you beth, what you jumped out at
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you as a negative when you went through the s-1? >> for me just the accumulated losses were kind of surprising. in addition, i thought it was noteworthy when you look at their monthly active user data, when you look at the u.s., it seems like they only got an additional one million users going i think from 48 to 49 million from q one to q two. that is really not a lot of growth for what is characterized as an emerging growth company. tracy: 218 million monthly active users, versus one billion on facebook if you need a little comparison. brian, what jumped out at you as a big negative. >> one, jumping ahead of sec comments. maybe they're pushing the calendar for financial reasons. the lockup expires october 24th for employees not executives. they might be selling to pay taxes based on vested restricted stock awards.
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tracy: interesting point on a day we have to watch out for. thank you both. the saga will certainly continue. we have to have you back. >> thanks a lot. ashley: we know about twitter. we have absolutely no idea when the september jobs report will actually come out if ever. what other vital information will we miss if the government shutdown goes on and on? wells fargo chief economist john silvia is here next with his take. stay with us. ♪
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tracy: 90 minutes until the close. nicole petallides on the new york stock exchange. you are watching pandora. nicole: i am.
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27.62. we are watching pandora closely because we have some confidence. it is a bit deal. it looks like they are betting on the company. we already know that the stock has done well. it is up over 200% this year. today doing well once again. on light volume, i should note. ashley: the september jobs report is postponed indefinitely. the shutdown enters the fourth day. what does the delay means for investors, and, of course, the fed? >> for many people, it is.
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a lot of traders, a lot of investors avoid settling accounts on that first friday of the month given the volatility of the marketplace. now you transfer it and realize that you do not know when that employment number will be released. it is a big deal. ashley: is there enough data to at least gauge the health of the market right now? >> yes, there is. you see a lot of analysts using the isl surveys, use jobless claims, come up with an estimate and, you know, basically say, hey, the number will be around 170-180,000. as you know, often times we are surprised by the actual release. ashley: what was your estimate?
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>> hours was 170,000. ashley: could the next jobs report be in jeopardy? >> as you can imagine, yes. any sense that federal government employees who were doing those are not employed, we could see next month's release also being delayed or perhaps being released with very incomplete data. ashley: that is tough. what impact will it have on the fed? >> it will impact them a lot. the challenges, such as job growth, they conduct policy on those benchmarks.
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we know those benchmarks are not available or very biased because of the incomplete data. that presents a big problem for the fed. everyone figures that the fed will not do anything for the rest of the year. it may not impact policy all that much. it's certainly impacts the feds thinking about policy. ashley: what about the government policy as it continues to drag on? what impact is it having? >> it accumulates over time. if we were to settle in the next three-five days, probably very little impact. all of the downside occurs in the same quarter where the workers go back to the job and also get paid.
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as we build up, there will be other people who will not be paid. that has an economic impact. ashley: do we get a grand bargain? will we all kind of hog and make friends again at the end of the day? >> i think there may be some handshakes. i do not think any hugs. adam: very good. we appreciate your time. >> thank you. tracy: may be a, hi, are you? obamacare is in the books. gerri willis will give us the details. ashley: let's take a look at the ten and 30 year treasuries.
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the government is partially shut down. we will be right back. ♪ reluctant to try new things. really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and seice. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally. and this park is the inside of yr body. see, the special psyllium fir in metamucil
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actually gels to trap some carbs to help maintain healthy blood sugar levels. metamucil. 3 amazing benefits in 1 super fiber. ♪ >> i am melissa francis with your fox business brief. 3000 employees have been identified for furloughs starting on monday.
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this comes as the united technology announced and extended shutdown would force furloughs for as many as 5000 workers. tyson says it will use private data to price hogs. coming up at 5:00 p.m. eastern on "money" -- we will have the perspective on the twitter ipo and what it means for the rest of the technology industry. that is the latest from fox business. giving you the power to prosper. ♪
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ashley: it is day four of the obamacare exchanges. the white house is asking people to be patient as problems
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persist for americans trying to sign up online. gerri willis is wrapping up a special series. how ugly is it, gerri? gerri: it is pretty ugly. not a lot of people have been able to register. they said 4.7 million. you start looking at the exchanges, california said 5 million people were on the website. it turns out it was less than 7000. in new york, they thought they had 10 million. no, 44,000. blue cross blue shield said they signed up 1% in north carolina. ashley: what? gerri: one person. tracy: do we give it the benefit of the doubt?
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gerri: they have had 2.5 years to get this together. for goodness sake, if you cannot get it done in 2.5 years, when will you get it done? do not do it now. give it a month. give it several weeks. tonight we will be talking all about this on my shelf. i have a panel of experts coming on. i have been slammed with all kinds of questions. we will answer all the questions tonight at 6:00 p.m. live. you can call in and we will answer questions. there is the phone number right there. tracy: that is awesome. in order to figure out if you qualify, you have to get on the website. if you cannot, how can you figure it out? gerri: those computers are spitting out bad numbers right
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now. i say wait. you will have to give it a few weeks before you find out for sure. that is the reality. ashley: thank you so much. do not miss the gerri willis show tonight. it is being described as a big rate through in special effects. the sci-fi film "brevity" opens this weekend. dennis kneale has the story. ♪ dennis: connubial gravity's pull? that is an old song. this sci-fi flick is likely to take the box office.
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a gambling thriller also opens this weekend. gravity tells a story of space station astronauts who gets stranded in space and five for their lives. it is being held by a riveting trailer. the idea of floating out in space all alone. the critics are raving a 98% positive rating at rotten tomatoes.com. some say the special effects in this bill are so good it amounts to a breakthrough on par to some of the greatest sci-fi titles of all time. it could assert a positive pole
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on hollywood wowing us with 3d and imax affects jaswant 3d has lost its box office buzz. film fans can take part in this. some critics are predicting a best actress nomination for hollywood darling sandra bullock. let's be happy for her. ashley: yes, we will. always. tracy: we love her. it is a quarter till. time for stocks now. we had a guest earlier that set the longer the government is shut down, the longer paper is shut off. >> i would rather see the market act on its own without the crotch of the government.
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tracy: what is your perfect storm that is brewing? >> the starting gun for that time will happen once the government resolved their issues. they will be left with two, maybe three months at most to3 get that yield in. the others will be forced to chase performance. tracy: that is a great point. it is almost 4:00 o'clock on a friday. i know you drink a vodka with no group. [laughter] tracy: eye on the other hand, put fruit in my vodka. ashley: turning trash into gas. up next, we are taking a closer
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look at a company's effort to fill gas tanks. tracy: let's take a look at some losers and winners on the nasdaq as we head to break. we will be right back. ♪ ♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company.
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ashley: from landfills and sewage pumps to your gas tank. clean energy fuels have started selling fuel from its stations in california.
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harrison, thank you so much for joining us. explain to me how this works. how does it happen? >> we are fueling our vehicles now, we announced yesterday, thousands of vehicles across california with bio methane. it is produced from organic waste. we go to landfills, wastewater treatment plants, agricultural operations. the organic ways that is associated with those operations, when it decomposes in and oxygen free environment, it naturally produces methane. we put it into the gas grid and
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now we are making it available to our customers across the state as a fully renewable fuel. ashley: that is pretty impressive. what is the cost and how effective is it, fuel was? >> it is just as effective as natural gas. it can meet 100% without any sacrifice of performance whatsoever. it can be anywhere from one dollar to $1.50-gallon discount. ashley: the big issue is how do you set up the infrastructure? how do we expand this across the country? >> right. in terms of getting the gas out to the stations, we are very lucky that we can take advantage
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of the existing infrastructure. clean energy we have been building infrastructure for 15 years. we can offer this fuel we source from entirely organic waste and today you can get in an 18 wheeler and go coast to coast fueling it entirely with this. ashley: who do you count as customers and do you expect that number to grow significantly? >> right. absolutely. we expect that number to grow.
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we work with a lot of fleets. trash trucks. we feel a lot of trash trucks. taxis. really, we are focused on vehicles that consume a lot of fuel. they get the most economic benefit and it produces the most environmental benefit. ashley: we wish you the very best of luck. there should be a lot of sources of methane for you. thank you so much for joining us. >> thank you for having me. i appreciate it. tracy: that is good stuff. apple's iphone5 c has only been on sale for about two weeks. best buy is already cutting the price. you can get a $50 gift card that
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you can use right away. the deal started yesterday and runs through monday. the more expensive ones has totally been selling out. stores are well stocked with the 5c on the other hand. my daughter and i walked into an apple store, if you pick it up, it feels like a child's toy. ashley: coming up on "countdown to the closing bell," session rally and major averages. the dow of 82 points. one of the most highly anticipated ipos of the year is a step closer to reality.
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we will talk to someone who says forget facebook and all of those other technology ipos. other technology ipos. stick around. ♪ [ music transitions to rock ] make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you open an account. ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.
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emerson. ♪ ♪ >> all right. i'm adam shapiro in for liz claman. is the last hour of trading. reelecting and a broad rally after a mostly down week for. detect and nasdaq is chilly the standout. the nasdaq stays above 3781 at the close, it will beef five straight gains of week. catamaran. facebook, yahoo, and best buy networks all in play. while investors are reading the fine print on the twitter ipo, many of the truly devouring shares of sandwich maker potbelly in its first day trading after going public. the stock soaring from its

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